Several MPR members push for negotiations with IMF

JAKARTA (JP): Several members of the People's Consultative Assembly (MPR) toned down their criticism of the International Monetary Fund (IMF) yesterday, saying that the country must continue to talk with the organization to expedite a full economic recovery.

Prominent assembly members called on the soon-to-be formed cabinet to maintain a cooperative stance and conduct negotiations with the IMF.

"Like it or not, the IMF is an international financial institution with major funds and influence," the United Development Party's (PPP) Hamzah Haz said.

"FPP (the United Development Faction) hopes that the new cabinet will continue the talks with the IMF," said Hamzah, the faction's vice chairman.

His statement was a radical departure from the fervently jingoistic comments expressed by his peers the day before. They charged that national dignity should be upheld rather than bowing to international pressure.

Those comments came on the heels of President Soeharto's suggestion that the "liberal" tendencies of the IMF reform package was against the "familial style" prescribed by the 1945 Constitution.

Hamzah refused yesterday to pass judgment hastily.

Indonesia must respond to the IMF's decision with crystal clear judgment and a cool head, he said. "A study must be done to see which parts are liberal and which are not."

Golkar assembly member Fahmi Idris concurred but stressed that some renegotiation was needed, adding that the new cabinet had to immediately lobby and negotiate with the IMF so that the group would allow several revisions of its program.

Fahmi maintained that some revision was necessary given some of the program's contents could not be applied given the country's present situation.

On Jan. 15 President Soeharto signed a 50-point letter of intent with the IMF to conduct sweeping economic reforms.

Among issues that many people here have raised concern over is the requirement that the government halt subsidies on certain primary goods such as fuel.

Soeharto's remarks came on the heels of the IMF's decision to delay the second disbursement of its aid package.

Fahmi said a cessation of fuel subsidies, due to come in at the beginning of next month, would be extremely rough on the people.

"We are optimistic that the IMF will be willing to negotiate and give an objective consideration that some of the points in the letter of intent are not applicable here," Fahmi said.

"This could help prevent a negative impression of us breaking an international agreement," he argued.

Golkar economist and assembly member Gunawan Sumodiningrat said the reform package was generally acceptable but that there was a disparity in the perception if its implementation.

Gunawan said the Indonesian economy was a market economy which still adhered to the principles of cooperatives and family-run businesses.

In this kind of economy, he explained, the government cannot just lift subsidies on certain goods which affect a great deal of people.

PPP chairman Ismail Hasan Metareum remained firm in his rhetoric, arguing that Indonesia must not "beg" before the IMF to get the funds.

"It is up to them, if they want to give it to us that's good, but we will not be pressured by anyone, especially by foreign nations," he said.

"If we could do it back in '65, why can't we now?" asked Ismail, referring to then President Sukarno's decision to discard foreign aid altogether.

But Ismail also had strong words for the government who's faulty past economic strategies had led to frail economic fundamentals.

"When we formed our strategy, we focused too much on helping a minority instead of the majority with the ultimate aim of speeding up economic growth," he said.

Ismail also said that 30 years of development had been destroyed within a mere six months. (das)